Saturday, November 14, 2009
Gold has taken off in price, will Silver try to catch up?
With the continuing fall of the US Dollar, Gold on the COMEX has jetted up to a friday close of $1116.80 per ounce. Yet Silver on the Comex sits at a Ho-hum $17.39 an ounce? There seems to be a disparity here and common sense seems to dictate that silver needs to rise from here. Well there is alot to look at here, including bullion and coins. I'm no millionaire and can't afford stocks like BHP Billiton or RIO Tinto the mega player miners in this space, but not pure silver plays. You can look at the Junior mining stocks on the Toronto Stock exchange but your equity risk increases dramatically with these names.
So here is my recommendation: I-Shares Silver Trust , (Symbol SLV), from the Barclay Global Fund Advisors. The price currently is $16.92. It is up YTD 59.86 % and 84.07% for 1 year. Let these guys figure out what to buy. You get a 100% Silver play and don't have to try to figure out a miner's balance sheet. If anybody has other suggestions on Silver, please I invite you to post them in comments.
Dreary, rainy weather continues in PA. and Jersey,